partnership firm

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shuja khan (Querist)
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19 March 2010 can a partnership firm be shareholder in a company????? despite of the fact that partnership firm has an unlimited liability..

Rasesh

Rasesh (Expert)
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19 March 2010 A partnership firm cannot be a shareholder. The shares can be owned by the Partnership firm but the shares have to be held in the name of the partners.

The same applies to shares in demat form. A demat account can be opened by a partnership firm but the account can be opened only in the name of Partner(s) and the securities that belong to the Partnership Firm can be held in this account.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 February 2011 A partnership firm ,not being a person, cannot be registered as a member of a company except where the company is licenced u/s 25 of the Companies Act,1956.

ref :- Circular 4/72 dated 9/3/1972.

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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08 May 2012 In the above case, whether an AOP or BOI can hold the shares of a private limited company?

Otherwise, a Charitable trust or co-operative society can hold the shares of a private limited company?

Please let me know sir,

Thanks